Industry Outlook

James Pearson, head of the Australian Chamber of Commerce and Industry, cited flat consumer spending as a potential issue for the industry. Still, this problem may hold no bearing if tax cuts on personal income will materialise in the future.

Prime Minister Malcolm Turnbull expressed his support for such incentives, as well as reducing the tax rate for all businesses. Pearson said that it would help in putting “money in people’s pockets,” which will then encourage Australians to spend on products and services.

An upward trend in employment also indicates that many businesses aim to fill jobs related to a rise in new orders. Since the manufacturing industry would continue to grow in 2018, warehousing solutions such as longspan racking systems will also be in demand.

Analyst Insights

Simon Murray, Research Analyst at Westpac, said that public investments in infrastructure partly uplifted the manufacturing industry’s performance in December. Investments in non-mining activity and a low currency also serve as positive factors.